Ethereum’s price might be about to take off, according to a recent analysis. A crypto analyst, Burak Kesmeci, noticed a pattern in Ethereum’s funding rates that could signal a big price jump.
Funding Rates: A Key Indicator
Funding rates are a measure of the balance between traders who are betting on the price going up (long positions) and those betting on the price going down (short positions).
When funding rates stay low for a while, it usually means the market is unsure about which way the price will go. But when they suddenly rise, it often means a big price move is coming.
A Familiar Pattern?
Kesmeci noticed that Ethereum’s funding rates have been very low for the past month, similar to the period before a big price surge last year. In September 2023, funding rates spiked, and Ethereum’s price went from around $1,500 to over $4,000.
While Kesmeci can’t guarantee history will repeat itself, he thinks the low funding rates could be a sign that Ethereum is about to break out of its current trading range.
Ethereum’s Recent Performance
Ethereum’s price hasn’t seen a big jump in recent weeks, but it also hasn’t dropped much. It’s been trading within a specific range.
After hitting a new all-time high of over $4,000 in March, Ethereum’s price has been steadily declining and has been below $3,000 since August.
A Possible Turning Point?
Another crypto analyst, Alex Clay, believes that Ethereum’s price correction might be over. He thinks that if Ethereum breaks above $2,500, it could signal the start of a new rally.
So, while it’s too early to say for sure, the signs are pointing towards a potential surge in Ethereum’s price. It’s definitely something to keep an eye on!
